Does this (LLC running Airbnb renting) will affect the $500,000 principle residences capital gain tax exemption in the future when we sell it?
Yes, it will affect any future exclusion when you sell the house, and it will not be in your favor. For your situation this *will* be complex. It would not be conducive to cover all the possible complexities in this text based user-to-user forum either. I would highly recommend you seek information/knowledge on all your options and possible outcomes from a tax professional in your local area. This would be especially important if your state also taxes personal income.
